Binance Controls More than Half of Voting Power on Tron Network
- “Decentralize the Web” is Tron’s vision but how decentralized it really is?
- Ethereum founder Vitalik Buterin has been calling it a “centralized piece of trash” all along, however, about 62% of ETH nodes are running on centralized cloud services.
Recently, DigiByte founder Jared Tate also went ballistic on Twitter, talking about being “disgusted” with Tron – a “completely centralized” network hyping itself as “the most decentralized gift from god.”
In the blockchain and crypto industry, nothing really is decentralized, not as of yet!
When it comes to Tron, more than half, 56% of the New York voting power is controlled by the world’s leading cryptocurrency exchange Binance, according to TronScan.
“If they split their votes across 25 nodes, they'd have 499k per node and would control 25 out of 27 validating nodes. Decentralization theater. Centralized exchanges are an existential threat for crypto,” said Epicenter podcast co-host Brian Fabian Crain.
Binance became the highest-ranked Tron Super Representative in September this year with 12 billion votes while announcing support for TRX staking as well.
Tron has the top 27 Super Representatives among the 127 candidates that are voted on once every 6 hours. These Super Representatives play a key role in governing the Tron ecosystem as they ensure basic functions like block generation, bookkeeping, and package transactions while also having the right to participate in the voting of TRON network parameters proposals.
These 27 SRs are awarded a total of 336,384,000 TRX annually.
Although for Binance, Crain says, it “makes perfect sense from the point of view of delivering a better product for their users (…) even if it undermines the long-term viability of crypto.”
— Justin Sun (@justinsuntron) October 19, 2019